In a significant development, President Trump and the Justice Department have finalized a $1.7 billion agreement to settle a lawsuit concerning the leak of Trump’s tax returns by the Internal Revenue Service and Treasury Department. Acting Attorney General Todd Blanche disclosed the details on Monday.
While the settlement does not involve any financial compensation for Mr. Trump, his sons, or the Trump Organization, it does include a formal apology. Instead, an “Anti-Weaponization Fund” worth $1.776 billion will be established under Blanche’s oversight. This fund aims to systematically address claims from others who may have experienced similar issues of weaponization and legal challenges. More details can be found here.
The news followed shortly after court documents revealed the settlement’s completion.
Initially filed in January in a Miami federal court, the lawsuit accused the agencies of unlawfully enabling a contractor to disclose his tax returns, along with those of his sons and company, to the media in 2020. The suit, demanding $10 billion, was part of Trump’s personal legal actions against the government, with Eric Trump, Donald Trump Jr., and the Trump Organization also listed as plaintiffs.
Additionally, President Trump and his legal team have agreed to withdraw their administrative claims against the Justice Department. Previously, Trump had requested the government pay him approximately $230 million to resolve two federal damage claims related to investigations during his first and the current administrations.
Board appointed by attorney general to award funds
The newly established fund, managed by a five-member commission appointed by the attorney general, will be empowered to issue formal apologies and provide monetary compensation to eligible claimants.
The department said the fund will stop processing claims on Dec. 15, 2028, just over a month before whoever wins the next presidential election would be inaugurated. Any money remaining in the fund will revert back to the federal government, the department said.
“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Blanche said in a statement. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
Last week, ABC News was first to report that the suit was expected to be dropped in exchange for the creation of such a fund.
A spokesperson for the Trump legal team said in a statement that Mr. Trump “is entering into this settlement squarely for the benefit of the American people, and he will continue his fight to hold those who wrong America and Americans accountable.”
In a court filing in April, both sides in the case asked for an extension on deadlines in the case in order to “engage in discussions designed to resolve this matter and to avoid protracted litigation.”
In a footnote at the bottom of Monday’s filing, Trump’s lawyers argued that the motion to dismiss is “self-executing” and does not require a judge to sign off on the apparent settlement — or the motion to dismiss — effectively bypassing U.S. District Judge Kathleen M. Williams, who was assigned the case in the Southern District of Florida.
“No judicial analysis is appropriate,” after the dismissal, Mr. Trump’s legal team said.
Last month, Williams ordered a hearing on whether the Constitution allowed Mr. Trump to sue his own government.
“Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,” Williams wrote, adding, “it is unclear to this Court whether the Parties are sufficiently adverse to each other so as to satisfy Article III’s case or controversy requirement.”
In a court filing Monday, 93 Democratic members of Congress attempted to intervene in the case, arguing any settlement would “siphon billions of taxpayer dollars into the pockets of the President, his family, and his allies.”
Last year, Mr. Trump and his legal team asked the Justice Department to pay him about $230 million to settle two federal damage claims over investigations targeting him during both his first administration and the Biden administration, according to a source familiar with the claims. It’s unclear if those claims will also resolved by this settlement.
